Türkiye Trails Europe in Car Ownership as High Taxes Inflate Vehicle Prices

Despite record-breaking reports in new car sales, Türkiye continues to lag behind OECD and EU countries in vehicle ownership per capita, according to a comprehensive market study conducted by LenaCars.

Türkiye’s Vehicle Ownership Lags Behind EU Average

As of 2024, Türkiye has 354 motor vehicles per 1,000 people, far below the EU average of 570 vehicles per 1,000. This places Türkiye among the lowest-ranked countries in the OECD in terms of personal vehicle ownership.

New Cars in Türkiye Up to 70% More Expensive Than in Europe

The report reveals that brand new vehicle prices in Türkiye are on average 70% higher than in Europe. The price gap widens significantly in the secondhand market:

• 2.5 times higher for cars aged 0–5 years,

• 5 times higher for cars over 20 years old.

Heavy Tax Burden Blamed for Market Distortion

Selçuk Nazik, General Manager of LenaCars, attributes this discrepancy to Türkiye’s outdated tax regime, particularly the Special Consumption Tax (ÖTV), which disproportionately affects both new and used vehicles.

“One in every four cars on Turkish roads is over 21 years old. That’s a direct result of unsustainable tax policies,” said Nazik. “Our tax system must be restructured based on market realities and environmental standards.”

He emphasized that a more balanced and sustainable tax approach would:

• Improve access to newer, safer vehicles,

• Boost domestic automotive production and investment,

• Help narrow the car ownership gap with OECD nations.

Europe Tax Structure Focuses on Emissions, Not Sales

Unlike Türkiye, European countries do not impose an additional sales-based tax like ÖTV. Instead, vehicle taxation is largely emission-based, encouraging environmentally friendly car ownership. Türkiye’s current structure, based on purchase value and income brackets, not only increases the cost burden but also distorts market demand.

Used Car Market Also Suffers

Nazik highlighted the impact on the used car segment:

“A 20-year-old Opel Astra sold for €2,000 in Germany is priced at €10,000 in Türkiye. That’s due to taxes being recalculated and added at each resale.”

This dynamic artificially inflates older car prices and discourages fleet renewal, pushing consumers to hold on to outdated and less eco-friendly vehicles.